Why?
Can any iPad owner tell me why the screen resolution needs to be increased. It looks amazing, it's held about eighteen inches from your face. The calls for a 'retina' display are frankly ridiculous and show a complete lack of basic technical understanding. Where is that processing power coming from? More pixels than a twenty four inch iMac screen, with less processing power, no cooling system and not halving the battery life?
Do get a grip people.
And for this criticising apple because of some rumour, also - get a grip. This reaks of a competitor trying to damage speculation of iPad two so that you go and buy their crappy seven inch bricks.
These forums have devolved into immature nonsense recently, and much of it is by people who have very, very little understanding of technology.
iPad two will be out around April. Specs will be slightly improved, it might have an sd card slot and will most likely have a front facing camera. Anything else is a bonus.
If that isn't enough for you, don't buy one. Dont whinge like immature school kids. I'm on my first gen iPad, it's a stunning device that is selling as fast as it can be produced. There's no need for any massive development for the second gen. I'll be giving it a miss as I have zero use for a camera.
It will launch, critics will slam it. It will sell millions. Tens of millions.